At a conference providing information on trade union activities and the draft revised Trade Union Law this morning in Thai Nguyen Province, Vice President of the Vietnam General Confederation of Labor Ngo Duy Hieu expressed his concern about the social consequences of skyrocketing housing prices.
He has raised concerns about the escalating home prices that are putting the dream of home ownership beyond the reach of laborers and low-income earners.
Mr. Hieu highlighted the problem of excessively high and unjustified housing prices such as impacts on the lives of workers. He warned that if this trend continues, the government's one-million-social-housing project is in danger of collapsing.
He pointed out that as housing prices skyrocket, so too will rental costs and workers’ families will shoulder more burden. For instance, he said, the housing costs were a stable VND5 and now they've jumped to VND7, it becomes extremely challenging to secure the necessary funding for social housing projects.
Vice President of the Vietnam General Confederation of Labor Ngo Duy Hieu also voiced his concern at the paradox that cement is in stock, workers at brick factories are at risk of losing their jobs, so why are housing prices still rising?
The national economy is facing challenges, and wage growth remains minimal; however, housing prices continue to escalate. Mr. Hieu doubted that certain companies have been taking advantage of this scenario to artificially raise prices, leading to significant anxiety and difficulties for many. Consequently, workers’ dreams of owning a house will not come true, creating uncertainty regarding their ability to purchase a home in the future.
During a recent Government press conference, Deputy Minister of Construction Nguyen Viet Hung highlighted three primary factors contributing to the sudden surge in real estate prices such as the imbalance between supply and demand, price inflation, and high input costs. He underscored that the 2023 Law on Real Estate Business has implemented measures to curb price inflation and market manipulation.
He said that in April 2023, the Prime Minister gave the green light to the initiative 'Investing in the Construction of at least 1 Million Social Housing Apartments for Low-Income Individuals and Industrial Park Workers from 2021 to 2030'.
This initiative is designed to offer affordable housing for low- and middle-income populations. By the year 2030, it is planned that approximately 1,062,200 apartments will be launched in the market, with around 428,000 units projected for completion by 2025.
Additionally, the initiative encompasses a credit program amounting to VND120,000 billion, which aims to assist investors and homebuyers through preferential interest rates, thereby facilitating the construction and acquisition of social housing. Policy frameworks are also being refined to enhance the mobilization of capital through social contributions for these projects.
To achieve the target of social housing development by 2030, it needs an estimated investment capital of VND849,500 billion. The credit program for social housing and worker housing projects will be the first priority in the government’s plan to ensure social security.
